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CONTADORES DOMINICANOS

What Are the Benefits of Commercial Companies?

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Do you know what a Commercial Company is and what the benefits of this type of company are for entrepreneurs in the Dominican Republic?

A Commercial Company, also known as a Mercantile Company, is an association of one or more people aimed at carrying out one or more commercial acts.

In this article, we outline the main benefits of commercial companies, which are detailed in the General Law of Commercial Companies and Limited Liability Individual Enterprises No. 479-08 and its amendments, Law No. 31-11.

Types of Commercial Companies Covered by Dominican Law:

  1. Limited Liability Individual Enterprise (EIRL).
  2. Limited Liability Company (SRL).
  3. Public Limited Company (SA).
  4. Simplified Public Limited Company (SAS).
  5. General Partnership.
  6. Simple Partnership.
  7. Joint Stock Partnership.

If you want to learn about the main characteristics and the requirements for establishing these commercial companies in the Dominican Republic, we invite you to read the following article: types of companies and commercial enterprises.

At Contadores Dominicanos, we have the best professionals who can advise you on the establishment of your company or commercial enterprise.

Benefits of Commercial Companies in the Dominican Republic:

Limited Liability Individual Enterprise (EIRL):

  • In this type of company, you can be the sole owner.
  • The owner will have their own legal personality and can conduct both civil and commercial operations.
  • There is no minimum amount of share capital required.
  • The owner can be autonomous and will not depend on another person for decision-making.
  • The owner will not be liable with their personal assets for the company’s obligations.

Limited Liability Company (SRL):

  • The partners will not be personally liable for the company’s debts.
  • Low capital requirement: the minimum capital will be one hundred thousand Dominican pesos (RD $100,000.00).
  • A statutory auditor is not mandatory.
  • It can be managed by a single manager.

Public Limited Company (SA):

  • Losses are limited to the partners’ contributions.
  • There is no maximum limit on the number of partners.
  • Shares are freely transferable.
  • All partners will have limited liability, only up to the amount of their subscribed shares.
  • All decisions will be made with the participation of all partners.

Simplified Public Limited Company (SAS):

  • Partners are only liable for the amount of their contributions.
  • It has the autonomy to freely specify its rules and regulations.
  • A statutory auditor is not required unless private debt securities are issued.
  • Protection for minority partners.

General Partnership:

  • All partners will be managers unless otherwise stipulated in the bylaws.
  • They enjoy full legal personality.
  • All partners can take on an administrative role within the company.

Simple Partnership:

  • There is no minimum capital requirement to establish the company.
  • Partners are liable according to their responsibilities.
  • The distribution of profits is for all partners, both general and limited.
  • Both general and limited partners have the right to access financial reports.

Joint Stock Partnership:

  • Limited partners are only liable for debts in proportion to their contributions.
  • All decisions and the election of representatives must be made at a general shareholders’ meeting.
  • It is not required to have a legal reserve within its assets.

We hope this information helps you understand the benefits of each commercial company in the Dominican Republic.

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